Blacks Leisure Share Discussion Threads

[strutt12] 14/12/2011 08:16

The embattled outdoor specialist Blacks Leisure yesterday confirmed the sportswear giant Sports Direct, led by Mike Ashley, and other parties had approached it about a potential takeover.

Following a report in The Independent yesterday, the operator of the Blacks and Millets chains said it had "received an expression of interest from Sports Direct International, among a number of others, which may or may not lead to an offer being made for the company".

The outdoor retail chains Mountain Warehouse, Go Outdoors and Cotswold Outdoor have also thrown their hat into the ring to acquire part or all of Blacks Leisure. The listed group has debts of £36m and made a loss of £16m in the six months to 27 August.

[strutt12] 13/12/2011 16:25

The problems will be solved when everyone has their positions in place, question is can they do it before someone else has a pop???



Sports Direct, the sportswear chain controlled by Mike Ashley, along with Go Outdoors and Mountain Warehouse, are among the trade buyers to register an interest in a takeover of Blacks Leisure.

The troubled outdoor specialist – which operates the Blacks and Millets chains – put itself up for sale by hiring advisers at KPMG last week after it failed to gain support for a fund raising from shareholders and potential new investors.

The group – which owns 98 Blacks outlets and 208 Millets stores – has debts of £36m and warned that the sale of the company, or one or more of its brands, could see shareholder value wiped out. It issued a profits warning last month and made a loss of £16m in the six months to 27 August.

First-round bids for Blacks Leisure are due in before Christmas and Sports Direct, which has a 22 per cent stake in the retailer, is a long-term suitor and has notified the group of its interest.

But it faces competition from outdoor retail chains Go Outdoors, Mountain Warehouse and Cotswold Outdoor.

Private equity firms are also interested but the distressed state of Blacks Leisure means that an accelerated sale to a trade buyer – which has knowledge of the retailer's offer, stores and personnel involved – is more likely.

Blacks ideally wants to complete a sale before the end of January. If it cannot complete a sale of part or all of the business, a pre-packaged administration cannot be ruled out. This enables a new buyer to take a business forward without its debt. Its shares closed at 2.1p yesterday, valuing it at just £1.8m.

All parties declined to comment.


DYOR IMHO

[clocktower] 13/12/2011 15:12

I cannot see it lasting long before one offer or another is taken to solve the problems that the companies has.

[hyper al] 13/12/2011 11:55

RNS!!!

"Update on sale process

As previously announced, the Board of Blacks Leisure Group plc (the "Board") has invited offers to support further investment in the Group, which is most likely to involve a sale of the Company or sale of one or more of the Group's brands. The Board notes the recent press speculation and confirms that it has received an expression of interest from Sports Direct International plc, amongst a number of others, which may or may not lead to an offer being made for the Company."

[sir rational] 12/12/2011 16:08

Suppliers wouldn't normally refuse to supply him until it had been proved beyond reasonable doubt that he was always going to discount in such a way that other key customers got seriously p!ssed off. Usually they would work out a way around, eg developing ranges exclusive to Ashley that couldn't be directly compared to (say) Amazon.

[strutt12] 12/12/2011 14:50

Sir Rational,

So if he's going to lose 50 Million, why purchase more?????? He would of sold out alot earlier than this and lost less, also he wouldn't offer his distrubution services, to assist them, unless he's happy to run the business from behinds closed doors!!!!

I'm right in saying suppliers won't deal with him, they've made that public knowledge, but he stands to make a fortune on his position if he can help Blacks turn the business around!!!

IMHO, DYOR

[sir rational] 12/12/2011 14:37

Blacks Leisure Group PLC (BSLA:LSE): Last: 2.09, up 0.085 (+4.25%), High: 2.50, Low: 2.09, Volume: 636.05kNH
up againNH
all the makings of a muppet specialA term of endearment used to describe BB share promoters on FT Alphaville.BE
Though that's not usually a category in which we'd put Richard GriffithsBE
Who appeared on the shareholder register yesterday.BE
What on earth is he thinking?NH
he's smart enough to play muppet sentimentNH
wait for the stock to sinkNH
by a stakeNH
and then watch it rise because the muppets think at 2pNH
it's cheapNH
the trick of courseNH
is to get outNH
before the company slips into administrationNH
as it surely willBE
That could well be it. Wait for the retail punters to get sideswiped ....NH
and this does seem to happen all the timeNH
what did DTZ get up toNH
before it was suspended?NH
8P??BE
Something like that, yes.BE
I can see the logic here. It's like playing chicken.NH
dangerous game

[sir rational] 12/12/2011 14:34

Nothing, But Ashley might still be better off losing the value of his shares and cherrypicking the good bits at prepack

[strutt12] 12/12/2011 14:25

Graham,

If it goes in a pre-pack, what's in it for the share holders????

[graham2405] 12/12/2011 13:10

Why would anyone bid for this when it's heading for pre-pack.

Bid for it then, and lose the liabilities.

Easy............. ;-)

[howard112] 12/12/2011 09:45

The media is not sure of this, firstly we are looking at Administration, but then buyers are circling from various sources.

Would Mike Ashley be happy with a rival JD sports bid??

[strutt12] 10/12/2011 11:07

Dugganjoe

Santa Claus !!!

It's Christmas!!!!!!!!!!!!

;-))

[napoleon 14th] 10/12/2011 10:44

Let's hope for a repeat of 15 years ago, then.
I had a small punt on this, back in May.
Too early, obviously!

[dugganjoe] 10/12/2011 10:05

rents and wages for the quarter on 25 December - who will pay the wages this month?

[strutt12] 09/12/2011 16:04

Howard112

As I've said before, not sure Mike will buy it, but Im certain he wants to run it and he stands to make alot of money if he can help the board to turn the business around!!!!!

[graham2405] 09/12/2011 16:02

Hyper Al, will they still be your friends in a week. ;-)

[howard112] 09/12/2011 16:00

graham2405 - 9 Dec'11 - 15:55 - 381 of 382

Possibly, but something will have to happen over the next week..

[hyper al] 09/12/2011 15:58

still watching this.

I don't have the cash to buy, but some of my friends do and are buying, their decision.

[graham2405] 09/12/2011 15:55

Someone is trying to take control of Blacks, it's note necessarily a bid.

Perhaps they are just trying to take control of the board.

[howard112] 09/12/2011 15:41

srutt12 - 9 Dec'11 - 14:49 - 379 of 379

Hardly a company going into administration, just depends what price Ashley will take this out, 3p,4p,5p,6p ?? etc

[strutt12] 09/12/2011 14:49

very interesting to see Andy Brough, who is very friendly with Mike Ashley has increased his stake by 5 Million shares

DYOR IMHO

[howard112] 09/12/2011 10:46

Sir Rational - 9 Dec'11 - 10:00 - 377 of 377

Well the odds are lowering, therefore there is definite value at these levels.. Dont bet your house, but a small amount could see a nice return..